The direct exchange of goods and services Barter The plan for the management of the resources for an economy Budget A printed promise of money from one person to another, which can be redeemed at a bank Check A form of contest between two rivals Competition A person that purchases a good or service Consumer An amount of money a person is allowed to spend, with the understanding that the money will be paid back within a timely manner to the bank issuing the credit Credit Cards which allow the holder to spend a certain amound based on the understanding that the money will be repaid Credit Cards An amount of a unit of money Denomination To place money into the custody of a bank Deposit A business that obtains products from producers and distributes them to retailers for sale to consumers Distributor The structure of the management of resources Economy An establishment dedicated to helping individuals and businesses to manage money Financial Institution A system in which private businesses are free to organize and operate for profit in competition with other businesses, without strict government control Free Enterprise A charge for borrowing money Interest When a product is sold for less than what it cost to make it Loss Something that is nice to have, but not necessary to survival Luxury Whenever there are buyers and sellers exchanging goods and services Market A medium of exchange which can be used to measure value or as a means of payment Money An item or service which is necessary for survival Need An opportunity that is lost when an economic choice is made Opportunity Cost A person or organization that creates goods or provides services Producer The difference between the cost to produce the produce or to deliver the service and the revenue Profit A source of supply or support Resource The full amount of money received through sales or taxes Revenue The imbalance between unlimited wants and limited resources available to satisfy those wants Scarcity Work done by professionals such as doctors, lawyers, and entertainers Services When there is a limited supply along with a high demand Shortage To create only specific goods or services designed to meet specific needs Specialize The idea that when the supply of goods is limited and the demand is high, the price goes up; when the demand is low and the supply high, the price goes down Supply and Demand When the supply of something is greater than the demand Surplus An item which is nice to have, but not necessary to survival Want A guarantee on a product Warranty To remove money from a bank account Withdraw These are key vocabulary words which you will need to know. They will be studied and introduced throughout the year. The more information that you know about these terms and topics the better!!!